Caraustar acquisition of Newark Group reported to have cleared Justice Dept review

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Caraustar acquisition of Newark Group reported to have cleared Justice Dept review

February 18, 2015 - 08:37

OAKLAND, CA, Feb. 18, 2015 (RISI) -Caraustar's acquisition of The Newark Group has cleared a Justice Department antitrust review, according to several knowledgeable US boxboard and recovered paper market sources. An official announcement is expected this week.

Caraustar, owned by H.I.G. Capital, announced the merger in July. It would combine the second and third largest producers of uncoated recycled paperboard used in tube and core and other products with total capacity of about 847,000 tons/yr. The new company will also produce coated recycled board, gypsum wallboard, and recycled containerboard at 13 US mills.

H.I.G. Capital did not respond for comment late on Feb. 18.

Market sources have said DOJ was investigating the merger up until early January. It was not known if the approval would require divestment of any assets. Newark Group is owned by DDJ Capital.